Anil is the owner of Brick and Mortar, a construction company in a growing city. Anil has been in the construction business his whole life and takes pleasure in the day-to-day operations of the business. Brick and Mortar has quickly become popular, largely because Anil almost always comes in at a lower bid for the work than his competitors. Anil has hired trustworthy employees to whom he can grant ever-growing responsibilities, and he has built a state-of-the-art cafeteria and gym for them to enjoy. He is meticulous and thorough with his filing system and has designated his vice president, a long-time colleague, as his successor in the event of his death. Based on this scenario, what management issue is Anil most likely to experience as a result of his actions?
A) His long-time colleague might not be a strong manager or be a good record keeper.
B) Anil has over-delegated responsibility and will likely lose control of his business.
C) His low bids and gym and cafeteria construction could possibly leave him short of cash.
D) The growth of the city may attract other builders, leaving him without adequate business.
E) The satisfaction and joy Anil finds in the construction business may wane over time.
C) His low bids and gym and cafeteria construction could possibly leave him short of cash.
Explanation: Some of the common management challenges include the following: the possibility of not enjoying it; the difficulty of survival; the new challenges that come with growth; the difficulty of delegating; the misuse of funds; poor controls; and mortality and succession. In this case, Anil has presumably spent a lot of money building the cafeteria and gym, but his low bids mean the company's profit is likely low. Together, these factors could result in cash flow problems.
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